No wonder U.S. hotel companies are scrambling to develop properties outside this country: Despite political volatility and more, performance data for 2006 shows double-digit growth in RevPAR for hotels in Asia, Central and South America, Europe and the Middle East.

According to a recent HotelBenchmark survey by Deloitte, the Middle East led the way for the third consecutive year, posting RevPAR growth of 16.5 percent; despite terrorist activity and other political unrest in the region, ADR there grew 17.8 percent to $142.

In Central and South America, RevPAR growth was 13 percent, and ADR grew 12.3 percent to $122. In Europe, RevPAR grew by 12 percent to $102, almost double the growth achieved in 2005, Deloitte reports. Part of the reason was special events such as the Winter Olympics in Italy and the Americas Cup in Spain.

Even in Asia Pacific, which experienced earthquakes, terrorist attacks and bomb explosions, RevPAR grew 11 percent; in India, RevPAR shot up 30 percent. Deloitte has called India “one of the leading stars in the hotel industry.”

Meanwhile, PricewaterhouseCoopers has pegged RevPAR growth in U.S. hotels at 8 percent in 2006. This country hasn’t been attacked in more than five years, it’s relatively peaceful and earthquakes are rare here. Maybe it should do more to draw international travelers—something other countries seem to do well despite long odds.

Hospitality property owners and managers are always looking for ways to save money. One way to do so is to pay attention to tax details particular to the business owner. Here are a few tips to keep in mind, courtesy of Grant Thornton’s Construction Real Estate and Hospitality Industry Group. For more tax tips, go to www.grantthornton.com/taxtips or email CRH@gt.com.

1.    Review The Pension Protection Act of 2006.  The Act introduces major changes to previous pension rules, with a primary focus on more stringent funding requirements for defined benefit plans and permitting the use of automatic enrollment in 401(k) plans. It also includes several significant tax incentives and retirement savings for your employees by making existing rules permanent.  In addition, important changes are made to charitable giving, including a new provision allowing tax-free distributions from IRAs for charitable purposes.

2.    Assess tax credit potential.  Your tax professional can inform you of specific tax credits that may be relevant to your business. For example, the tip credit and certain general business credits, such as the welfare-to-work credit and the work opportunity tax credit, can provide significant tax savings for the hospitality industry.

3.    Consider establishing a separate entity to own and lease fixed assets used in your business.  Often referred to as “leasing companies” or “procurement companies,” these entities can help manage your assets and may significantly reduce your sales and use tax – a tax you collect and remit regardless of whether your company is profitable.

4.    Determine if your company has overpaid sales and use taxes.  Most companies pay a substantial amount of money to suppliers and state tax agencies, but often overlook potential sales and use tax exemptions.  You may be eligible to file a refund claim to recover losses and put a system in place to prevent future overpayments.

5.    Consider expensing versus capitalizing repairs.  You may be able to deduct the cost of certain repairs made to your property, depending on the type of property and the effect of the repair upon the property.